A theory of gender differences in parental altruism

Abstract.  We offer a theory of gender differences in parental altruism based on the asymmetry that female fertility is constrained but male fertility is relatively unconstrained. Modelling human preferences as having been shaped during the Pleistocene, we derive evolutionarily stable, co‐evolved male and female preferences for altruism towards one's children. We demonstrate that there would be gender differences in parental altruism that depend on the relative abundance or scarcity of resources and the importance and substitutability of parental inputs in promoting the survival of offspring. The results point to greater altruism in females, under plausible conditions. JEL Classification: D64, J16, P46     

LIQUIDITY AND ASSET PRICING UNDER THE THREE‐MOMENT CAPM PARADIGM

We examine whether the use of the three‐moment capital asset pricing model can account for liquidity risk. We also make a comparative analysis of a four‐factor model based on Fama–French and Pástor–Stambaugh factors versus a model based solely on stock characteristics. Our findings suggest that neither of the models captures the liquidity premium nor do stock characteristics serve as proxies for liquidity. We also find that sensitivities of stock return to fluctuations in market liquidity do not subsume the effect of characteristic liquidity. Furthermore, our empirical findings are robust to differences in market microstructure or trading protocols between NYSE/AMEX and NASDAQ.     

A Comparison of Cost of Equity Estimates of Local and Global CAPMs

Cost of equity estimates are compared for three pricing models: the traditional local CAPM, the single (market) factor global CAPM, and the two‐factor global CAPM, with both market and currency index factors. For 2989 US stocks, the average difference in the cost of equity estimates is about 48 basis points between the local CAPM and the single‐factor global CAPM, and is about 61 basis points between the two global models. For 70 developed‐market ADRs, the corresponding average differences are 76 and 47 basis points, respectively. For 48 emerging‐market ADRs, the corresponding average differences are 57 and 70 basis points.     

Bank mergers and components of risk: An evaluation

The present study empirically examines the contribution of the acquired banks in only the nonconglomerate types of mergers (i.e., banks with banks), where the bulk of the payment is in the form of equity to the acquiring bank and finds overwhelmingly statistically significant evidence that nonconglomerate types of mergers definitely reduce the total as well as the unsystematic risk while having no statistically significant effect on systematic risk. Therefore, it seems that diversification may be a possible motive for bank mergers.     

“Do Fiscal Deficits Influence Current Accounts? A Case Study of India”

This paper examines the effects of fiscal deficits on the current account deficits in the Indian economy. In many developing countries, fiscal deficits are mostly financed through monetization, causing crowding out of private investment expenditures. However, fiscal deficits in India are mostly financed through official borrowings from various external sources, leading to higher interest payments and outgoings on the external account. Such a policy could eventually precipitate balance of payments crises despite favorable trade account and real exchange rate. Data over three decades for the Indian economy show that, in addition to the real exchange rate and the ratio of private investment to GDP, fiscal deficits significantly contribute to the current account deficits.     

Cointegration of U.S. budget and current account deficits: Twins or strangers?

In this paper the authors employ the cointegration approach to explore empirically the existence of a possible long-run equilibrium relationship between the U.S. budget deficits and the current account deficits. This study uses annual nominal data in levels for the postwar period 1946–1988. Both the DW and the ADF tests confirm that the two deficits are not cointegrated. It implies that the two deficits have no possibility of reverting to a long-run equilibrium relation.     

Quality-enhancing trade liberalization

This paper examines the effect of trade liberalization on the quality of industrial goods produced by a developing country. The intermediate goods used as inputs to industrial production are assumed to be non-traded and produced by firms with market power. It is shown here that for a certain range of human capital levels, exposure to free trade, instead of resulting in de-industrialization, can raise welfare through an improvement in the quality of domestically produced industrial goods.     

区域电力市场的十大障碍及其对策

中国迄今已经在电力改革方面取得了很大进展.目前所处的行业重组阶段,旨在为建立竞争性电力市场奠定必要的基础.尽管最初的省级电力市场试点为提高行业的经济和技术水平创造了条件,但建立区域电力市场以优化资源配置和提高效率的潜力显然更大.但是,建立区域电力市场的难度远大于建立省级电力市场.本文讨论在中国建立区域电力市场的障碍因素及其可以采取的应对措施.     

Valuing Mortgage Insurance Contracts in Emerging Market Economies

We develop a new option-based method for the valuation of mortgage insurance contracts in closed form in an economy where agents are risk neutral. While the proposed valuation method is general and can be used in any market, it may be particularly useful in emerging market economies where other existing methods may be either inappropriate or are too difficult to implement because of the lack of relevant data. As an application, we price a typical Serbian government-backed mortgage insurance contract.     

Market orientation and customer satisfaction: Evidence from British machine tool industry

This paper examines empirically the relationship between market orientation and business performance in the context of British machine tool industry. An industry-specific market orientation scale was developed. Factor analysis revealed that there were four latent dimensions underlying the market orientation: customer orientation, competitor orientation, departmental responsiveness, and customer satisfaction orientation. Findings suggest that customer orientation and customer satisfaction orientation have a stronger impact on performance than the other dimensions, and that competitor orientation has a U-shape relationship with performance. Departmental responsiveness did not appear to be significantly related to the business performance. Managers could use the multidimensional conceptualization to develop particular kinds of orientations required for better performance.